German technology major SAP expects India to be one of its largest markets in the near future, with the region being one of the fastest growing markets for the global inc, said Chief Executive Officer Christian Klein.
SAP is betting on the fast pace of digitisation in the country across industry verticals to drive growth. Currently, its research and development arm, SAP Labs India, has around 15,000 employees.
“What we find extremely attractive here in India is the PM putting up an excellent foundation for tech companies. India is also embracing technology to digitise large industries, now we find here a lot of manufacturing related customers. Supply chain is key, retail is key, utilities, renewables and all of these customers need SAP software to transform, so it's a key market for us,” Klein said.
The CEO also underscored that major IT companies like Tata Consultancy Services Ltd., Infosys Ltd., Wipro Ltd., Tech Mahindra Ltd., and others invest heavily in SAP, employing thousands of the company's consultants. “This is also a big advantage of SAP Labs. We are coding software together, building content and services together. The ecosystem is a big factor here,” he said.
SAP sees business opportunities in India in multiple verticals. Klein explained that many large German companies are expanding their manufacturing operations in India, recognising it as a key future business hub alongside China and the US. These companies require software solutions that can support global operations across regions like Germany, the US, China, and India. This is boosting demand for platforms like SAP.
Further, the company's offerings in areas like finance, supply chain, and HR help mid-market companies. The multiple unicorns in India, too, are relying on it to drive their ambitious growth plans, he said.
Commenting on whether artificial intelligence and automation will make job roles redundant, and result in hiring slowdown, the CEO said that as long as the business is growing at 30% annually, there will be a need for more developers, though not in a directly proportional manner.
With India's rapidly diversifying economy and increasing demand for software, the need to develop more software will continue to grow. While productivity will improve and software can be developed more efficiently, the workforce will still need to expand to meet demand.
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